The New Zealand dollar rose more than 1% to $0.57, its highest level in three weeks, after the Reserve Bank cut interest rates as expected but signaled it may be nearing the end of its easing cycle. The RBNZ lowered its cash rate by 25bps to 2.25%, the lowest level since June 2022, as it aims to support a sluggish economic recovery. However, the central bank's updated projections had a more hawkish tilt, with its forward guidance showing the cash rate falling to 2.2% in the second quarter next year, implying only a modest chance of an additional cut. By the end of 2026, the rate is projected to rise slightly to 2.28%. This prompted traders to sharply scale back expectations for further easing.